Conflict can happen when there are multiple generations within a business.
Pete Scherer is the CEO and a third-generational leader in the family business, Scherer bros. Lumber Co. Out of nearly 300 employees, there are currently four family members that work and lead within the company. In this episode, Pete explains how he leads and keeps the interests of the company aligned when he hears multiple visions and thoughts from different members of the family.
Key Takeaways:
[1:30] A little bit about Pete and his company, Scherer bros. Lumber Co.
[3:10] How does Pete structure the business?
[6:30] What trade-offs did previous generations have to make in order to make this company work?
[8:25] As Pete’s son currently works for the company, how does Pete bring children into the business?
[10:20] If you want to make a career out of the family business, the rules for family members become a lot tighter.
[13:00] The business is not obligated to keep you on if you’re not a good fit.
[16:20] Nepotism is always assumed. Whether it is or not. How does Pete work through this?
[19:40] How does the fourth generation address Pete? Do they ever use the word ‘Dad’ or ‘Uncle’?
[23:55] How are the boards of directors formed in Pete’s company?
[27:45] How do shareholders vote for new board members?
[32:50] Pete is constantly being humbled in the business. Pet projects and passion projects that weren’t able to be profitable have to get cut.
Mentioned in This Episode:
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